What is the maximum fine for violating the Anti-Kickback Act as it pertains to a Brightstar Care franchise?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
b. Anti-Kickback Laws
Certain provisions of the Social Security Act, commonly referred to as the "Anti-Kickback Statute," prohibit the offer, payment, solicitation or receipt of any form of remuneration either in return for the referral of patients or patient care opportunities paid in whole or in part by a federal health ca
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, violating the Anti-Kickback Act can result in significant penalties. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving any form of payment in return for patient referrals or for recommending, arranging, purchasing, leasing, or ordering items or services paid for by federal healthcare programs, including Medicare, Medicaid, and the VA.
The document specifies that violating the Anti-Kickback Act is a felony. The maximum fine for a violation is $25,000. In addition to the fine, a conviction can lead to imprisonment for up to five years, or both a fine and imprisonment.
Furthermore, a conviction under the Anti-Kickback Act results in automatic exclusion from federal healthcare programs, including the VA. This exclusion would prevent a Brightstar Care franchise from receiving payments from these federal programs, which could severely impact its revenue and operations. Prospective franchisees should consult with legal counsel to ensure full compliance with these laws.